Also, TraderFeed finally put together a piece on long/short hedged strategies(ie long DIA/short IWM), something I've talked about for months. As you can see from my simulated account holdings, I have on the wrong position on YM/ER2 (positions should be reversed if I wanted to be actually making money)

F-F-F?As many of you smart investors and traders already know, the fed fund futures have priced in a 25bp cut for the upcoming meeting on Oct 31 (I never gave a HOOT about FFF when I first started trading, let alone knew what they were, but since I'm starting to analyze intermarket relationships more, I see this as a vital component in the stock/bond relationship). With the recent run up, what has been going on in these markets? Here is a breakdown from Friday with a couple of my own thoughts on the change in open interest in futures and option contracts.

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comments:

Anonymous
said...

What is your feeling on Monday? Is the market gonna crash hard on Monday?

I highly doubt it. Expecting Asia to open lower. the first hour will be vital to see if put holders exercise there positions, which again I highly doubt, because that would require alot of money, and it would be stupid to do so 1 week ahead of FOMC interest rate decision. Expecting a pullback in bonds and a small bounce in equities at the end of day on Monday. We'll see!